KRUM — The Krum school district was able to increase the amount of its fund balance by $205,161 during the 2008-09 fiscal year, even while opening three district facilities and purchasing land, according to an audit report released to board trustees recently.

In the report presented by auditor Carl Deaton of the firm Hankins, Eastup, Deaton, Tonn & Seay, Krum ended the fiscal year Aug. 31 with a fund balance — the savings a district carries from year to year — in its general fund totaling more than $7 million.

The Texas Education Agency recommends that school districts have at least three to four months of operating funds in their fund balance in case of emergency. For Krum, the audit report placed that figure at close to $5.2 million.

Deaton said Krum holds about six months of operating expenses in savings, “which is excellent,” he told trustees.

Deaton’s report showed that the district had “no expenditure functions that were over budget,” he said. The report indicated no qualified opinions or recommendations for improvement by the auditing firm.

Krum school board members unanimously approved the report’s findings during a meeting Nov. 11.

Board President Phil Enis said he was pleased with the report, just as he expected to be. He attributed the positive report to the work of staffers in the district’s finance department.

“The ladies that handle the finances do a great job, and they never let us down,” Enis said.

Superintendent Mike Davis applauded the fund balance increase as a great feat in a year when opening new facilities would increase expenses for the district. He said the district was fortunate to stay in the black when it could have easily gone in the red had finances not been managed properly.

Last month, Krum school officials announced that the district received a rating of “superior” for the sixth consecutive year by Financial Integrity Rating System of Texas, also known as FIRST, TEA’s financial accounting rating system used to evaluate a district’s financial management practices. Davis said the rating coupled with the audit report showed that finances were handled well last fiscal year.

BRITNEY TABOR can be reached at 940-566-6876. Her e-mail address is btabor@dentonrc.com .